Summary: Neptune Orient Lines Limited (NOL) announced last Friday the completion of the sale of its logistics business, APL Logistics Ltd (APLL) to Kintetsu World Express (KWE) for an aggregate price of US$1.2b. The final price is still subject to adjustments for the net cash and net working capital of APLL and its subsidiaries as at the completion date. As we previously had already factored in the impact of the divestment of APLL into our model (refer to our most recent full report on NOL dated 15 May), we maintain our HOLD rating on NOL, with an unchanged FV of S$1.15.

Source: OCBC Research - 2 Jun 2015